1. Energy RESEARCH AND INNOVATION POLICY FOR EUROPE
14th SG MEETING OF PA2 INSTITUTE FOR FOREIGN AFFAIRS AND TRADE Budapest, 13 July 2017
Energy RESEARCH AND INNOVATION POLICY FOR EUROPE
András Siegler dr. eng.
Director of Energy R&I (ret.) - European Commission

2. The 10 priorities of the Juncker Agenda
1. Jobs, Growth and Investment, 2. Digital Single Market, 3. Energy Union and Climate, 4. Internal Market,…,10. A Stronger Global Actor
Political statement:
"I want to reform and reorganise Europe’s energy policy in a new European Energy Union."
„It will ensure that Europe has secure, affordable and climate- friendly energy. Wiser energy use while fighting climate change is both a spur for new jobs and growth and an investment in Europe's future.” 2

3. The Multiannual Financial Framework (the EU budget) 2014-2020:
Smart & inclusive growth* (€451 billion)
Sustainable growth, natural resources (€373 bn)
Security and citizenship (€16 billion)
Global Europe (€58 billion)
Administration (€61.6 billion)
(figures are given in constant prices)
HORIZON 2020
(€77Bn)
Education, Youth, Sport
Competitive Business SMEs
Connecting Europe*
Cohesion
TOTAL
€960 billion
Funding programs: HORIZON2020, Structural funds, European Fund for Strategic Investment, NER300, … 3

4. Energy and Transport R&I in the EU policy agenda
Pres. Juncker's political agenda: the 10 points
Cmr Moedas's R&I policy agenda
Jobs, growth, investment
Internal market, industrial base
Open innovation
Energy Union,
Climate change
Energy & Transport R&I
global actor
Stronger
Open
science
Open
to the
world
boost growth and jobs + decarbonise economy + improve mobility
Digital single market
VP Sevcovic's policy strategy 4

5. The Energy Union strategy (2015) five interlinked dimensions
Energy Security, Solidarity and trust
A fully integrated internal energy market
Energy Efficiency
Decarbonisation of the economy
Research, innovation and competitiveness 5

6. 1. Energy security, solidarity and trust
Diversify sources, suppliers and routes
Security of gas supply
Comprehensive LNG strategy
Southern Gas Corridor & Mediterranean
Intergovernmental Agreements
EU Energy and climate policy diplomacy 6

7. Infrastructures (PCIs*) Electricity market design
2. A fully-integrated internal energy market
Connecting markets and upgrading their software
Infrastructures (PCIs*)
Electricity market design
Regional cooperation
Energy prices
& costs
*Projects of Common Interest 7

8. 3. Energy efficiency
Meeting the 2030 target and "energy efficiency first"
Buildings
Products
Transport
Energy Efficiency Directive
Energy perform. of buildings Directive
Energy labelling & Ecodesign
Strengthened financial instruments
Heating and Cooling 8

9. 4. Decarbonisation of the Economy
Meeting 2030 targets and COP21 decisions
Achieve the 40% GHG target
Renewable Energy Package
Decarbonization of transport
Alternative fuels and clean vehicles 9

10. 2030 Framework for Climate and Energy*
-20 % GHGs Emissions
20% Renewable Energy
20 % Energy Efficiency
 - 40 % GHGs Emissions
27 % Renewable Energy
 27%** Energy Efficiency
10 % Interconnection
15 % Interconnection
** To be reviewed by 2020, having in mind an EU level of 30%
2020
2030
New governance system + indicators
*European Council Conclusions, Oct 2014 10

11. 5. Research, innovation and competitiveness
Integrated Strategic Energy Technology Plan
Strategic transport research and innovation R&I agenda
EU global technology and innovation leadership
Implemented via HORIZON 2020 11

12. EU energy R&I policy framework: the Strategic Energy Technology Plan (SET-Plan)
Research, innovation and competitiveness
How to maintain global leadership?
World leader in renewables & energy storage
Empowering consumers
Efficient energy systems
Sustainable transport systems
Additional priorities: CCS and safe nuclear 12

13. Accelerating Clean Energy Innovation (EC Communication 30 Nov. 2016)
Contribution to the 4 priority R&I areas
The EC intends to focus future funding available under Horizon 2020 more clearly on four interconnected strategic priorities, digitalisation being a key driver.
Decarbonising the EU building stock
Strengthening EU leadership on renewables
Developing affordable and integrated energy storage solutions
Electro-mobility and a more integrated urban transport system 13

14. Accelerating Clean Energy Innovation
Funding energy S&T and its market adoption
The EU is one of the global leaders and largest public funders of clean energy research & innovation  Horizon 2020 allocates over €10 billion in funding to clean energy R&I.
Complemented by investments from the European Structural Investment Funds (ESIF), supported by Smart Specialisation Strategies. 14

15. ENERGY MIRACLE? SOLAR 15 Costs down 150 x
MW Installed
100,000
$/W (DC) 50
Costs down 150 x
10,000
1,000 5
110000
Cumulative installations up 115,000x 10 1 1
1975
Volume installed (MW) - RH scale
2015 15
Source: Maycock, Bloomberg New Energy Finance

16. SOLAR WIND 0.0 % 0.0 % 0% (% OF SYSTEM TOTAL) 16 Seven doublings Four
25.0%
25.0%
12.5%
6.3%
3.1%
1.6%
0.8%
0.4%
0.2%
0.1%
Seven
doublings
Four
doublings
12.5%
6.3%
3.1%
1.6%
0.8%
0.05%
0.0 %
0.4%
0.03%
0.0 %
15 years
15 years
0.01%
0.2% 0%
0.0%
0.1%
2000
2002
2004
2006
2014
2000
Note: Y-axes are logarithmic with base 2 16
Source: Bloomberg New Energy Finance, BP, UNEP

17. H2020 Energy Challenge: objectives
Develop next generation of clean energy technologies
Demonstrate innovative solutions
Removing barriers for market uptake
Improved energy security
Reduced negative impact on climate / environment
Affordable energy prices
Intelligent Energy for Europe (IEE)
( )
EUR 0.73 bn
FP7 Energy
( )
EUR 3.25 bn
safe
H2020 Energy Challenge
( ):
EUR 5.7 billion 17

18. Low carbon fuels low emission energy production
Market development of alternative fuels and infrastructure
"Clean Power for Transport” package
Alternative Fuels:
biofuels
CNG (Compressed Natural Gas)
LNG (Liquified Natural Gas) – waterborne and long haul
hydrogen
battery electricity 18

19. Improving energy efficiency of mobility systems - vehicle and infrastructure
Sustainable transport: "working towards a form of mobility that is sustainable, energy-efficient and respectful of the environment"
European Green Vehicles Initiative to develop technologies allowing the efficient use of clean energies in road transport
Electrification
Alternative fuels
Vehicle technology
Automation and connectivity in Transport
Improving conventional ICE
Hydrogen and Fuel-Cell Initiative for developing
hydrogen appl’s in transport 19

20. Decoupling mobility demand from economic growth
Logistics and freight
multimodality/modal shift, load factors, platooning…
Intelligent transport systems and automation
traffic management, cooperative systems, automation and connectivity…
Smart mobility systems
innovative mobility: car pooling/sharing, public transport, alternative modes…
2020

21. Transport system efficiency Deployment of alternative powertrains
Expected impacts
Transport system efficiency
Improvement by 50% from 2010 to 2030, including:
+80% energy efficiency of urban vehicles
+40% energy efficiency of long distance freight transport
Deployment of alternative powertrains
Electric and plug-in hybrid technologies:
5 million Electric & Hybrid vehicles in the EU by 2020
Battery life-time and energy density to be doubled by 2020
Battery costs to be decreased by 30% by 2020 21

22. Fundamental research (European Research Council)
Horizon 2020 elements ensuring quality and impact of future European investments towards a low-carbon economy
Fundamental research (European Research Council)
Market-creating innovation (European Innovation Council)
Inducement prizes
„Grand Societal Challenges” (Thematic programs):
Energy research
Transport research
Climate research
Space research
Social sciences and humanities
EURATOM research
2222

23. For further information
Participant Portal
Helpdesk
Learn more about Horizon 2020
2323

24. Thank you for your attention!